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Delta Corp receives GST demand notices totalling over $210m

Company says tax claims based on gross bet value are arbitrary and will be legally challenged.

1 min read
india gst
Key Points
Goods and Services Tax (GST) shortfall notices issued for FY2022–23
Total alleged liability exceeds RS 1,752 crore ($210m)
Dispute centres on taxation of gross bet value rather than gross gaming revenue

Delta Corp has disclosed that it and its subsidiary have received fresh GST demand notices from the Government of Goa relating to the financial year 2022–23.

In a filing to the stock exchanges, the company said notices were issued under Section 74(1) of the CGST Act, 2017 and the Goa GST Act, 2017 by the Office of the Commissioner of Commercial Taxes. The notice to Delta Corp alleges a tax shortfall of RS 1,350.25 crore, while its subsidiary, Highstreet Cruises and Entertainment, has been served a demand of RS 402.12 crore. The combined alleged liability amounts to RS 1,752.37 crore.

The authorities claim there has been a short payment of GST, calculated on the estimated gross bet value of all games played at the casinos during the relevant period. Delta Corp stated that the issue of levying GST on gross bet value rather than gross gaming revenue has been an industry-wide matter, with representations previously made to the Government. 

The company confirmed that it and its subsidiary have challenged earlier notices relating to prior years. The Supreme Court has stayed further proceedings on those disputed demands until the petitions are finally disposed of.

Delta Corp said it has received legal advice that the latest notices and associated tax demands are arbitrary and contrary to law. The company indicated it will pursue all available legal remedies to challenge the claims and related proceedings.

The development represents the latest escalation in a long-running dispute over the appropriate GST basis for India’s casino and gaming industry.

Good to know

Similar GST demands covering the period from July 2017 to March 2022 are currently stayed by the Supreme Court of India pending final adjudication

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